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Employer of Record in Argentina

Employer of Record in Argentina

Argentina is increasingly becoming a hub for new and expanding businesses. Argentina is a viable option for companies looking to hire remote teams. Skuad simplifies the process of Employment in Argentina. Its unified and automated platform expedites processes such as onboarding and managing remote teams.

Argentina at a Glance

Estimated Population: 44,938,712 (2019 Estimate)

Currency: Argentine Peso (ARS)

Capital: Buenos Aires

Number of officially recognized languages spoken: Six

Languages frequently used: Spanish, Guarani, Welsh, and Wichi

GDP: $444.458 billion (2019)

Employment in Argentina

Argentina’s labor laws have multiple provisions, including employee welfare funds. You must be mindful of these provisions if you are hiring in Argentina. Countries have laws and provisions to safeguard the interests of the employees working in these companies.

A large number of people working in Argentina belong to other countries. These laws also safeguard the interests of the foreign nationals who work there. There are several contracts between different countries; Argentina’s laws are formulated accounting for all these factors.

Argentina has numerous employee entitlements such as leaves and employee health benefits. As a company, you should be aware of these employee entitlements. Skuad has resources that can help you to manage the Argentinian employees’ entitlements; book a demo to learn more.

Entitlement Explanation
Statutory Working Hours

According to Employment Contract Law No, 11, 554, all employees can work up to a maximum of eight hours a day and 48 hours a week. The number of working days is flexible for organizations. The 48-hour limit can only be changed with a bargaining agreement.

Also, employees can work extra, but not for more than 30 hours per month. Employees should be given at least a 12-hour break between two working days.

If the employee works during weekends, they will be entitled to an additional 50% daily pay.

Paid Public Holidays The employees are given 12 national holidays. All these are paid public holidays. If an employee works during any of these holidays, they will be given 100% compensation for that day. These holidays are:
  1. New Year’s Day
  2. Shrove Monday
  3. Shrove Tuesday
  4. Day of Remembrance for Truth and Justice
  5. Maundy Thursday
  6. Good Friday
  7. Malvinas Day
  8. Labor Day
  9. Flag Day
  10. Argentina Independence Day
  11. Feast of Immaculate Conception
  12. Christmas Day
Disclosure and Confidentiality of Personal Information The employer has several key pieces of information about the employee on record. Disclosing this information is allowed only if the employee permits it. However, the employee may choose to revoke their consent at any time.
  • In some cases, the consent of an employee is not required; for instance,
  • If the law has permitted the disclosure
  • If government agencies need the data
  • If the data is necessary for public health reasons
  • If the information is anonymized
Employee Protection and Anti-discrimination Rights In Argentina, employees are protected against any kind of discrimination by several local labor laws. If an employee is terminated based on their gender, race, identity, nationality, ideology, or religion, the employee can demand to be reinstated in the organization or seek to remove the source of such discrimination. Also, they can ask the employer for payments of severance and damages.
Time Off Work Employees in Argentina are entitled to a special leave of absence in several cases. Some of these cases are,
  • Birth of a child: Two days
  • Marriage: Ten days
  • Death of spouse, child, or parent: Three days
  • Death of a sibling: One day
  • Examinations: Two days per exam
Medical Leave The employees can avail of medical leaves if they are sick or have met with an accident. They can also take a paid leave of three months if they have been with the company for less than five years and six months if they have been associated with the company for more than five years.
Annual Leave Accrual Entitlement Employees are entitled to paid annual vacations. The number of days changes with the level of seniority in the organization. An employee gets,
  • 14 days if the employment duration is less than five years
  • 21 days if the employment duration is between five to 10 years
  • 28 days if the employment duration is between 10 to 20 years
  • 35 days if they have served the company for more than 20 years
Maternity Leave Women are entitled to 90 days of paid maternity leave. Forty-five days can be availed before the child is born and the other 45 days after the child’s birth. Also, an employer cannot terminate a female employee if she is pregnant.

Contractors vs. Full-time Employees

Argentina employment laws govern the employment status of employees. Also, employment contracts in Argentina are drafted for the status of employment and tenure of the services that have to be provided by the employee. Generally, if an employee is on board for an indefinite period, they will most likely be a full-time employee. The employment agreement in Argentina has special clauses for severance pays and the notice period for full-time employees. The Employment Contract Law governs these clauses in Argentina

Several factors distinguish a full-time employee from a contractual employee:.

  1. A full-time employee is onboarded by a company for an indefinite period, whereas contractual employees have a timeline in place post which the employees will not be considered a part of the organization.
  2. There are several laws that protect a full-time employee in Argentina whereas contractual employees do not come under the purview of those laws. However, if the contractual employee is terminated without a just cause, he can seek 50% of the indemnity of payments.

There are several fixed terms and contingent, temporary contracts in place, where the duration of the association of the employee with the company is pre-decided. If a fixed-term contract is terminated before its maturity, half the severance pay of a full-time employee is given to the contractual employee. With Skuad, you can manage both your full-time as well as contractual employees without any hassle. Talk to us to know more.

Hiring in Argentina

The employee onboarding process is not very cumbersome in Argentina. Companies look for resources online using popular employment sites such as Monster. Professional sites like LinkedIn also play a significant role in hiring employees at a global level. Other local job search sites like Bumeran, ZonaJobs, etc. also help companies in scouting the best talent. The recruiters then conduct several rounds of testing to analyze and understand the candidate’s potential and choose the best fit for the role.

About 78.86% of people in Argentina are employed in the services sector. Therefore, a lot of jobs arise from various services like teaching, etc. However, due to the pandemic, most employees are working remotely. This has attracted a lot of global talent to Argentina. English teachers and remote workers are in very high demand in Argentina currently.

The process of handling recruitment from scratch can be extremely tiring for companies. With Skuad, you can hire employees with much more ease and convenience. Skuad takes care of all the steps involved in the recruitment process so that you can focus on the other essential aspects of your business.

Probation & Termination

Probation Guidelines

Several laws and policies govern probation and termination in Argentina. Any kind of indefinite term employment contract has a standard probation period in Argentina. All employees have to serve this specified probationary period before they are engaged as full-time employees. This can change through an agreement between the two parties.

In Argentina, the first three months of employment are considered to be the probation period. During the probation period, an employee is obligated to inform the company at least 15 days in advance if they want to leave the organization. Also, the employer might terminate the employee’s employment contract if the performance is not found to meet the organization’s quality standards. However, both the employer and the employees contribute toward the social security fund even during the probation period.

Termination of Employment in Argentina

The termination of the employment contract can be both voluntary and employer-driven. Once the employee is terminated or decides to part with the organization, they will have to serve a notice period. The duration of the notice period depends on the period for which the employee has been working for the company.

  • During the three-month probationary period, the notice period is 15 days.
  • The employee will have to serve a notice period of one month if they have been with the company for less than five years.
  • The notice period increases to three months if the employee has been associated with the company for more than five years.

Handling probation and termination can be challenging and time-consuming for the management. Skuad has an automated system of managing the workforce that companies have benefitted from globally. Book a demo to learn more about how we can take care of probation- and termination-related issues within Argentina’s legal provisions.

EOR Solutions

Companies have multiple operations to take care of. Getting external experts to provide EOR solutions is the best way to streamline the hiring process. Expert EOR assistance will let you focus on the operational tasks that are crucial for the organization and simultaneously ensure that the needs and issues of employees are addressed.

Skuad is one of the best EOR service providers. The expertise and experience of Skuad will save your company a lot of time, money, and energy for workforce management and expansion.

For upcoming organizations or organizations expanding into new markets, managing the workforce single-handedly can be highly challenging. Many EOR companies have a presence in Argentina, and Skuad features among the best. You can talk to us to learn more about EOR solutions in Argentina.

Types of Visas in Argentina

There are several types of visas in Argentina. Skuad can help your employees to get an Argentina work visa if they are foreign nationals. Among the different types of work visas in Argentina, most are temporary, such as the Labor Contract Visa, Intra Company Transfer visa, Family Reunification visa, and MERCOSUR Temporary Residence visa. These visas are different from permanent visas.

The Argentina work visa requirements are as follows.

  1. Supporting documentation such as a valid identification document or an employer-employee contract
  2. Visa assessment documents
  3. Translations and legalizations
  4. A valid passport
  5. Verified birth certificate
  6. Passport photos
  7. Medical records
  8. Receipt of visa payment

Other requirements depend on the type of visa the employee chooses. The major types of visas in Argentina are as tabulated below.

Type of Visas Explanation
Temporary Residence Visa These are the most common visas as they are issued mainly for the corporate immigration of a foreign national employee working in Argentina. This visa is issued by the National Directorate of Migration (DNM). Although it is valid for one year, it can be extended after approval from the DNM. The cost of the visa depends on the country from where the employee is migrating.
Transitory Residence Visa These are given to people who want to travel to Argentina for short projects. The visa allows you to stay in the country for a maximum of 90 days. Many technical workers opt for this visa if they are called for special projects by a local company in Argentina. This visa can be issued not more than twice a year for a 90-day term each time, and the tenure cannot be increased in any case.
Permanent Residence Visa This visa is taken by a person who wants to stay in Argentina indefinitely. Only a limited number of people get access to these visas. Also, if the employee has a spouse who is a permanent resident of Argentina, they might get the residence visa more quickly compared to others.

Skuad provides holistic EOR solutions and helps the employees of your company to secure a visa from the very beginning. The documentation and other aspects of the application are also taken care of by Skuad.

Work Permits

Argentina has a flexible policy when it comes to foreign workers. Several work permits are available which can help foreign nationals who want to work in the country. The Argentina Work Permit for Foreigners can be easily obtained if the person has an employment letter from an Argentinian company. Employers sponsor work permits, and Skuad can step in to facilitate the process as we have expertise in dealing with several kinds of work visas.

According to Article 20 in the National Constitution of Argentina, no foreign citizen would be subjected to any kind of additional charges. Applying for a work permit can take about three months. You need to submit the necessary documents such as the birth and marriage certificates, criminal background check report, a copy of the employer’s corporate registration and tax document, and a valid passport. Getting an Argentina work permit without a job offer is almost impossible. Therefore, it is recommended to look for a job first and then apply for a work permit in Argentina. Nearly all companies in Argentina hire employees from other countries. Using Skuad’s resources, you can speed up and simplify your process.

Payroll & Taxes in Argentina

Setting up the entire payroll function can be a time and labor-intensive activity for a company. You can instantly start payroll outsourcing in Argentina. With the help of EOR solutions companies such as Skuad, the burden of the entire payroll function can be borne by an expert. Payroll includes the following aspects.

Payroll Element Explanation
The currency of payments Argentine Peso
Employee information For payroll processing, several pieces of information are required from an employee. These details are then registered in the Special Payroll Book as soon as the employee is onboarded. Information is needed on the following.
  • Full name
  • ID number
  • Birthdate
  • Gross income
  • Position and department of work
  • Date of hiring
  • Marital status
  • Tax identification number (applicable in case of foreign employees)
Registration requirements for taxes Registration of employees with the tax authority is mandatory. A company can retain taxes from its employees’ salaries after getting them registered. Also, according to Section 52 of the Employment Contract Law, a special Labor Ledger has to be registered to the Department of Labor in which the details of both the employee and employer are registered. The taxes and social security registrations are done at the National Tax Office.
Social Security registration The fund is in place to help out an employee if they retire or are terminated. Once the employer and employee are registered with the fund, the employer will receive the registration slip, and the employee will get a copy of the slip. The registration with the social security registry is done before the employee starts working with the organization.
Documentation required Generally, while the payroll is being processed, the offer letter is not released by the company. However, a letter of intent or a written document will suffice. In case the employee has received the contract, the following details are necessary.
  • A specified trial period
  • Conditions governing overtime
  • Paid leaves
  • Maternity Leaves
  • Rules governing termination
  • Severance pay
  • Notice of dismissal

Argentina follows a pay-as-you-earn (PAYE) system in which the employer directly pays the taxes on behalf of its employees.

Taxation in Argentina

Employer Taxation

Argentina follows a pay-as-you-earn (PAYE) system in which the employer directly pays the taxes on behalf of its employees.

Tax Explanation
Corporate Tax 25%
Pension, Social Services and Family Allowances 19.5%
Health Insurance 6%

Employee Taxation

Note: Professionals who have been employed in Argentina for less than six months have to pay an income tax withholding of 24.5%. Also, no payroll tax is applicable in Argentina. Skuad has expertise in managing the collection, calculation, and payment of income tax.

Tax Explanation
Income Tax
Gross Income Tax Rate (%)
0 - 33,039 5% 9%
33,040 - 66,079 9% 14%
66,080 - 99,119 12% 19%
99,120 - 132,159 15% 23%
132,160 - 198,238 19% 27%
198,238 - 264,318 23%31%
264,318 - 396,477 27%35%
396,477 - 528,636 31%
528,636 and above 35%
Health Insurance 3%
Pension, Social Services and Family Allowances 14%

Incorporation: How to Set Up a Subsidiary in Argentina

Setting up a business in Argentina can be highly lucrative. You can either incorporate a holding company in Argentina or open a subsidiary office in the country. There are ample business opportunities in Argentina, and your company can easily set up its office in the country. As soon as you set up your business, you will have to look into onboarding employees.

There are several essential steps involved in registering the company in Argentina.

  1. Register your company with the sponsorship authority
  2. Complete the documentation of legalized papers and procurement of necessary documents
  3. Get an entry permit
  4. Apply for a Temporary Residence visa
  5. Apply to obtain the Work Identification Number
  6. Get a National Identity card

With its global infrastructural resources and significant industry experience, Skuad handles the incorporation process for you. You can request a demo to learn more.

Professional Employer Organization (PEO)

Professional Employer Organization (PEO) acts as your co-employer. It manages the end-to-end HR and administration functions of your remote team. The professional employer organization in New Zealand will be an administrative employer, whereas you will play the role of a work-site employer. However, all the major employee-related decisions will exclusively lie with you and not the PEO.

An EOR, on the other hand, acts as the legal employer of your remote team and will make all employee-oriented decisions relieving you from getting involved in the day-to-day HR decisions.

Employers who want to focus on their business scale-up should opt for an EOR solution. Right from hiring, onboarding, payroll, taxes, and termination, Skuad’s New Zealand EOR solution will handle everything for you. Our professionals adopt a 360° approach to offer you a hassle-free business expansion process. Find out more about Skuad here.

Conclusion: What Gives Skuad’s Argentina Solutions an Edge?

Argentina is a promising and convenient place to invest. Employment laws in Argentina are congenial for employers and focus on improving employment in the country. Still, Argentina’s business market has its share of complexities. Collaborate with Skuad to sail through it all smoothly. Skuad’s team will handle cross-border payments, payroll, compliances, benefits, taxes, and work permits in Argentina ensuring your complete focus on your business scale-up. To know more, book a demo now.

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